Report: Minneapolis is third most expensive city in North America

MINNEAPOLIS (KMSP) - As Minneapolis grows and develops, it seems the cost of living inevitably rises along with it--though many who end up moving here from other cities cite lower price tags as a key factor in their decision to relocate.

The data, however, may not reflect that fact, at least according to a study from The Economist that lists Minneapolis as the 26th most expensive city in the world and the third most expensive in North America.

Those numbers were a part of the publication's annual Worldwide Cost of Living Report, which factors in the prices of more than 150 goods and services in 133 metro areas around the world, including things like rent, transportation, utility bills, food and services.

It's a calculation many in the Twin Cities say doesn't add up, especially when looking at cities like San Francisco, Washington, D.C. or Seattle. Augsburg University economics Professor Dr. Jeanne Boeh says despite some slightly higher than average taxes, she can't think of any reasons Minneapolis would land so high on the list.

"I’d really like to know how they got this number, because it doesn’t make a whole lot of sense," Boeh said. "What I always tell my students is that just because it’s a number doesn’t mean anything."

At the same time, for many residents it's not just the amount they're paying to live in Minneapolis--it's what comes with that price, including reasonably priced housing, good schools and plenty of parks.

"Houses here they’re expensive, people are like, 'Oh my god it’s $300,000,'" said Bernie Jungle, who recently moved to the area from San Francisco. "But in the bay area it’s like, over $1,000,000 for a little house in Oakland. So it does seem like working people here can buy a house. That’s why we’re here."

According to the study, a weak dollar meant no U.S. city landed in the top 10 most expensive this year, with New York and Los Angeles coming in at 13th and 14th, respectively. Boston was the only American city to rise in the rankings, while Singapore and Paris were named the two most expensive cities in the world.